[Tim]

I just got off the phone with a merchant who had a bad experience with their credit card processor for MCA. It took four months to switch back to their original credit card processor. He said "we are concerned about losing control of our credit card processing" Is this experience an anomaly?

[WhoisKingsley]

Let's promise an offer by bribing a merchant to switch their processing... you switch processing, I fund you after you start batching... and I make residuals off of you too.

You have an ETF? We'll pay it!
Rates? pshhhh.... We'll beat it, by 0.01%!

But remember, no one wants to fund you (for whatever which reason) so I am going to make you feel like you have no choice.

Again, another issue in the amazing MCA world.

[JeffMulford]

lol smh.

[jpos]

Merchant services is a complex and constantly evolving business ... but what stays constant is that some providers use less than ethical practices.

I'm happy to share more if you'd like to drop me a line.

[WhoisKingsley]

Jpos- PM me... please share

[JSL23]

I'm sure this is kind of a fluke, but I hardly ever run into that. People are hesitant to switch Processors because they hate change, even small ones like Processing, and have been burnt(probably more than once) by a Merch. Processing company. When that comes up, just make sure you have multiple Merchant Processing companies you can utilize. This way you can tell them worst case lateral move, but you will probably save them a bit and you'll have the ability to show them in black and white.

I've had some situations where the Merchant adamantly stated they would not switch processing, so I just asked for an ACH instead and got that for them. I'm not sure which shops are willing to do either or, but you should ask. And there are other options like have them ACH a % of the Visa/MC instead of taking it directly from the processing. Then there is my favorite, LOCKBOX!! Have the xanex ready when you do one of those!

I've heard about the pre-ACH times and it sounds like they were a real annoyance....what % of all deals would everyone say are done through Split funding nowadays.....30%.......at most?

[Tim]

So what are their hot buttons that incite action? Yes we have the lowest processor rates, but what is it in a 'good' processor that triggers a merchant. It can't just be 'we won't burn you like those other guys'.

jsl23 would you clarify what you mean by 'lateral move'?

[Andy]

lateral move meaning that you just match their current rates, so everything is the exact same, just a different name on the top of their statements

as opposed to being able to save them a little money on rates

[JSL23]

lateral move meaning that you just match their current rates, so everything is the exact same, just a different name on the top of their statements

as opposed to being able to save them a little money on rates

^ What he said!^

Bottom line is I try to make it as little of an issue as possible. I want them to focus on funding and funding only. Make the processing as close to a non-issue as possible.

[MCAVeteran]

If the bank statements can support ach , there is no need for a processor switch. Most funders can do ach repayment on mcas these days or carry a loan product that does fixed dailys avoiding this topic all together. Only a small percentage of merchants have bad enough bank statements to force a switch. Some funders still do lockbox as well and many have a list of split processors that work with them. Check all this with your funder.

[jpos]

If the bank statements can support ach , there is no need for a processor switch. Most funders can do ach repayment on mcas these days or carry a loan product that does fixed dailys avoiding this topic all together. Only a small percentage of merchants have bad enough bank statements to force a switch. Some funders still do lockbox as well and many have a list of split processors that work with them. Check all this with your funder.

Processor switch may not be necessary, but the value of long term portfolio growth could dramatically improve your retirement or exit strategy.

Once you get a solid portfolio, or if you work with the right processor, you can leverage your portfolio and residuals to pull capital yourself. It may not be a fit for some, but if you had a situation where you can get a loan against your cc portfolio at 12-17% and use that capital to fund at a higher margin, you may elect to pull some cash.

Additionally, your cc portfolio can be included or separated from your mca business for when you exit. When you sell, you decide whether to include it in the sale or keep it as part of your retirement.